Section RZ 8 — Income Tax Act 2007: Payment and rate of withdrawal tax

RZ 8 Payment and rate of withdrawal tax When this section applies (1) This section applies when a person withdraws an amount from a special home ownership account that they have with an authorised savings institution and derives withdrawal income under section RZ 7(2) . Withholding withdrawal tax (2) The authorised savings institution must withhold the amount of withdrawal tax from the amount payable to the person. Rate of withdrawal tax (3) The rate of withdrawal tax on withdrawal income is 45% of the gross amount of the income. Paying withdrawal tax (4) The authorised savings institution must pay the amount of tax to the Commissioner no later than the 20th day of the month following the month in which it becomes liable to withhold the amount. Institution’s payment but failure to withhold (5) If an authorised savings institution fails to withhold and pay the amount of withdrawal tax under subsection (2), and has paid an amount to the Commissioner under subsection (3), it may recover the amount from the person. Person paying withdrawal tax (6) A person who derives withdrawal income under section RZ 7(3) must pay to the Commissioner within the time allowed the amount of withdrawal tax payable for the income. Defined in this Act: amount , amount of tax , authorised savings institution , Commissioner , gross , pay , special home ownership account , withdrawal income , withdrawal tax , Compare: 2004 No 35 ss IZ 1 , IZ 2 , IZ 4